Question:Consider the following statements regarding Prepaid Payment Instrument(PPI)-
- PPIs can only be used to purchase goods only
- Paytm, PhonePe and Freecharge are some popular PPIs
- Interoperability will be done between PPIs through UPI
Which of the above is/are correct?
(a)1 and 2 only
(b)2 and 3 only
(c)2 only
(d)All of the above
Answer: (b)
Related facts:
- Reserve bank of India (RBI) has released the guidelines for interoperability between Prepaid Payment Instruments (PPIs) such as wallets and cards.
- This will allow users of popular payment wallets such as Paytm, FreeCharge, PhonePe and PayZapp among others to transfer money from one wallet to another.
- Interoperability will be done between PPIs through Unified Payment Interface (UPI).
Prepaid Payment Instrument (PPIs):
- Prepaid payment instruments are those which facilitate the purchase of goods and services against the value stored on such instruments. The value stored on such instruments represents the value paid for by the holder, by cash, by debit to a bank account, or by credit card.
- Banks and Non-Bank Finance Companies (NBFC), who comply with the eligibility criteria, would be permitted to issue all categories of prepaid payment instruments.
- Only banks provide Mobile Banking Transactions are permitted to launch mobile-based prepaid payment instruments.
Unified Payment Interface (UPI) :
- UPI is a payment system launched by National Payments Corporation of India in August 2016.
- It facilitates fund transfer between two bank accounts on the mobile platform, without having to provide any detail of the beneficiary’s account.
- Unified Payment Interface (UPI) is a system that powers multiple bank accounts into a single mobile application, merging several banking features, seamless fund routing & merchant payments into one hood.
Ramayan Upadhyay
Links:
https://rbi.org.in/Scripts/NotificationUser.aspx?Id=11393&Mode=0